Standby Generator Market Size, Share & Industry Analysis, By Fuel Type (Diesel, Gas, and Others), By Power Rating (Below 75 kVA, 75 - 375 kVA, 375 - 750 kVA, and Above 750 kVA), End-User (Mining, Oil & Gas, Construction, Residential, Marine, Manufacturing, Pharmaceuticals, Commercial, Telecom, Utility, Data Center, and Others), and Regional Forecast, 2025-2032

The global standby generator market size was valued at USD 12.08 billion in 2024. The market is projected to grow from USD 12.85 billion in 2025 to USD 19.21 billion by 2032, exhibiting a CAGR of 6.94% during the forecast period. Asia Pacific dominated the standby generator market with a share of 31.20% in 2024.

The standby generator market is experiencing significant growth, driven by increasing demand for reliable power backup solutions due to frequent power outages, natural disasters, and rising dependence on technology. The global market is projected to expand, with Asia Pacific leading in market share due to rapid urbanization and infrastructure development. Government initiatives and regulations promoting renewable energy and sustainable practices are also contributing to the growth of the market.

Atlas Copco is a major player in the market, known for its robust and reliable QES series generators. These generators, ranging from 250 kVA to 500 kVA, offer a dependable power source for demanding construction sites and other applications. Atlas Copco also provides mobile diesel generators such as the QAX series, leveraging their expertise in compressor design for single-window service and reduced downtime. 

MARKET DYNAMICS

MARKET DRIVERS

Rising Power Outrages and Growing Need for Reliable Power Supplies to Drive Market Growth

The standby generator market growth is due to increasing urbanization and growing demand for reliable power supplies. This demand is further fueled by frequent power outages, growing awareness of backup power solutions, and the need for business continuity in critical sectors such as healthcare, IT, and data centers. Additionally, technological advancements, including the integration of AI and IoT, are improving generator efficiency and expanding market opportunities.

• In April 2025, Puerto Rico witnessed a large-scale blackout that affected 1.4 million people for long. Such incidences will foster demand for standby generators in the coming years.

MARKET RESTRAINTS

High Maintenance Costs to Limit Market Growth

Several factors are expected to restrict the growth of the market, including high initial costs, rising maintenance expenses, and concerns about environmental regulations. Additionally, the availability of alternative backup power solutions such as batteries and fuel cells and increasing government initiatives to improve electricity access also limit market expansion. Furthermore, volatile fuel prices and the high operational costs associated with diesel generators are key constraints.

Government initiatives focused on improving access to electricity in rural areas and developing renewable energy sources can reduce carbon emissions and the need for standby generators in the long term. The cost of diesel fuel, the primary fuel for many standby generators, is volatile and can significantly impact operational costs, making their use less attractive.

MARKET OPPORTUNITIES

Robust Demand for Backup Power Solutions to Create Numerous Opportunities in the Future

The standby generator market is poised for substantial growth, driven by increasing demand for reliable backup power solutions across various industries, including residential, commercial, and industrial sectors. Factors such as rising power outages, extreme weather events, and the need for uninterrupted operations in industries such as healthcare, IT, and manufacturing will continue to fuel market expansion.

Furthermore, government initiatives promoting energy resilience and environmental sustainability, along with the increasing adoption of smart grids, are expected to drive the demand for standby generators further.

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STANDBY GENERATOR MARKET TRENDS

Growing Demand for Next-Generation Standby Power Solutions to Fuel Market Growth

The standby generator market is expected to grow significantly due to the inclination towards cleaner and smarter technologies, with manufacturers integrating IoT-based monitoring, hybrid systems, and renewable energy compatibility; natural gas and propane are becoming more common due to stricter environmental regulations and push for lower emissions. Moreover, environmental concerns foster R&D into low noise, low emissions, and hydrogen-compatible generators, indicating the adoption of next-generation standby power solutions.

Segmentation Analysis

By Fuel Type

Diesel Segment Dominates the Market, Driven by High Fuel Efficiency and Reliability Factors

The market is segmented into diesel, gas, and others based on fuel type.

The diesel segment dominates the standby generator market. This dominance is driven by high fuel efficiency, reliability, and durability, making them a preferred choice for backup power solutions in various sectors. The increasing demand for reliable power in commercial, industrial, and even residential areas, especially due to power outages and aging infrastructure, further fuels the growth of the diesel generator market.

While natural gas generators are expected to grow significantly owing to the lower operating costs and environmental benefits, the availability of natural gas infrastructure limits their widespread adoption in some regions.

By Power Rating

Below 75 KVA Segment Dominated Market Owing to Its Versatility and Affordability

Based on power rating, the market is segmented into below 75 kVA, 75 - 375 kVA, 375 - 750 kVA, and above 750 kVA.

The below 75 kVA segment dominated the standby generator market, primarily driven by its versatility and affordability for residential and small-scale commercial applications. This segment caters to a broad range of power needs, making it a preferred choice for emergency backup and everyday operations where power demands are moderate. While higher-capacity segments such as 75-375 kVA and above 750 kVA cater to specific industrial and large-scale commercial needs, the below 75 kVA segment's adaptability and cost-effectiveness have led to its significant market share.

By End-User

Residential Segment to Dominate the Market Due to Increased Power Outage Frequency

Based on end-user, the market is segmented into mining, oil & gas, construction, residential, marine, manufacturing, pharmaceuticals, commercial, telecom, utility, data center, and others.

The residential segment is expected to dominate the market, driven by increased power outage frequency, a growing emphasis on home safety, and energy independence.

• In April 2024, Kohler launched a KD series of industrial generators catering to 50hz markets. The generator has an advanced engine (KD18L06), which can also run on a Hydrotreated Vegetable Oil (HVO) renewable fuel source.

Key drivers include the need for reliable power in developing nations and increasing urbanization, with technological advancements also pushing the market forward. The market is expected to continue growing, fueled by the rising demand for reliable power and the increasing prevalence of power outages.

Standby Generator Market Regional Outlook

By geography, the market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America

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North America is experiencing significant growth, driven by the increased frequency of extreme weather events, aging power infrastructure, and the need for reliable power in critical sectors. Increasing frequency and severity of weather-related disasters such as sleet storms, freezing rain, and powerful winds are leading to prolonged power outages, boosting the demand for standby generators. The portable generator market is also experiencing growth, particularly in the construction and commercial sectors, as well as for outdoor activities and emergencies.

U.S.

The adoption of standby generators in the U.S., particularly in the residential sector, is significant due to frequent power outages and the need for reliable backup power with a strong presence in the residential, commercial, and industrial sectors.

• In October 2024, Generac unveiled plans to hire 400 additional employees to expand the factory network in Wisconsin and South Carolina in the U.S. to cater to high demand from the region. Such developments through key market players indicate robust demand for regional power backup solutions.

Europe

In Europe, the market is experiencing significant growth, driven by increasing urbanization, the rise of work-from-home trends, and the need for reliable power during outages. As cities grow and more residential buildings are constructed, the need for reliable power sources, including standby generators, increases. Moreover, frequent and extended power outages, especially due to weather-related disasters, drive the need for reliable backup power sources.

Asia Pacific

Asia Pacific is expected to dominate the standby generator market share as region is witnessing rapid industrial growth, particularly in countries such as China, India, and Japan, fueling the demand for reliable power sources such as standby generators for factories and industrial facilities. The market in the Asia Pacific region is experiencing significant growth, driven by increasing urbanization, industrialization, and the need for uninterrupted power supply during outages and disasters. The market is projected to expand notably, with the Asia Pacific region expected to lead the global market share in the coming years.

Latin America

The market in Latin America is experiencing growth due to factors such as unreliable grid infrastructure and increasing demand for emergency power, particularly in commercial and industrial sectors. Emerging economies and the need for power in defense operations also contribute to market expansion. Furthermore, the region is witnessing growth in adopting home standby gensets, driven by a growing preference for lower-emission solutions and the increasing frequency of weather-related disasters. Brazil, in particular, is a significant demand driver due to its high need for reliable power.

Middle East & Africa

The Middle East & Africa market is experiencing growth due to increasing demand for reliable power output, particularly as urbanization and industrialization accelerate. Factors such as rising electricity demand, frequent power outages, and aging infrastructure drive the need for backup generators, especially in countries with limited grid reliability. Furthermore, the increasing adoption of hybrid and biofuel generators, offering more cost-effective and sustainable solutions, also contributes to market expansion.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Companies are Focused on Technological Advancement across the Globe to Expand Market Share

The global market is fragmented, featuring companies such as Caterpillar, ASHOK, LEYLAND, and Generac Power Systems, Inc. These companies collectively hold a substantial share of the market. For instance, In April 2025, Ecoflow launched a portable power generator with a capacity of 286 Wh with a recharge timing of one hour through an AC outlet. Moreover, this generator is also equipped with a 5,000 mAh power bank to facilitate wireless charging. The market players are focused on the latest technological advancements that enhance their market share.

LIST OF KEY STANDBY GENERATOR COMPANIES PROFILED

• Caterpillar (U.S.)
• ASHOK LEYLAND (India)
• Generac Power Systems, Inc. (U.S.)
• Kirloskar (India)
• Atlas Copco (Sweden)
• Wartsila (Finland)
• Siemens Energy (Germany)
• Mitsubishi Heavy Industries, Ltd. (Japan)
• Green Power International Pvt. Ltd (India)

KEY INDUSTRY DEVELOPMENTS

• January 2025: Generac Holdings, Inc. launched a standby generator designed for residential applications with a capacity range of 10 to 28 kW and equipped with an air-cooled system. These designs include ecobee smart thermostats and PWRcell battery systems.
• October 2024: Canter Power Systems acquired Grasten Power Technologies, a service provider and installer of home standby generators in Houston and the broader Texas market.
• July 2023: Kohler launched a 26 kW (26RCA) air-cooled home standby generator. The capacity of this generator ranges from 6 kW and 26 kW to cater to standby power generation requirements from residential end-users.
• August 2022: CPower and OmniMetrix partnered to develop an electric standby electric generator with remote monitoring and control solutions.
• February 2022: Generac and Sunnova announced the extension of their partnership to upgrade standby generator technology and categories such as home generators, microinverters, and load managers.

REPORT COVERAGE

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Report Scope & Segmentation